Question for our tax experts

[PryncessChrysty]

PRE-EMPTIVE DISCLAIMER: I understand that people with strong religious beliefs will oppose what I am proposing (along with my current living situation). While I am not discounting your beliefs and opinions, it is just not the same as mine or my DH2B. I am only looking for facts on tax filing.

DH2B and I have been engaged for quite some time (2 1/2 years ) and have been living together for the past 7 years. We've postponed the wedding until we are more financially secure, which we are now actively working toward, but are 'married' to each other in every other sense of the word. However, we've been hearing that couples who file 'Married' are given more of a tax break (we both currently claim 'Single' w/0 declarations). So we're considering getting married now to take advantage of the tax break (if there actually is one) to help us move to our goal even faster, and have the 'wedding' (which will then be a vow renewal) once we're set - which should be in the next 2 years. I always do our taxes myself through Tax Cut so I don't really have any people close to me that know much about this subject. I'm hoping one of my fellow DIS'ers will be able to help me out and possibly point me in the right direction.


TIA!!

 

[salmoneous]

Rule 1: Never trust tax advice you get on the internet

Rule 2: Broadly speaking, if a couple has similar income, they can pay less taxes filing as singles than as marrieds. The more dissimilar the income, the more likely they are to be better off as married. In addition, single couples can structure their deductions to allow one person to get most of the deductions and itemize, while the other person takes the standard deduction (what exactly you can and cannot get away with is not something you should trust folks on the internet to tell you - see Rule #1).

But there's no need to guess - since you've got TaxCut, just have the computer do the forms both ways and see which way you are better off.

 

[CharmCityGirl]

You're asking for 2007 taxes right? Not 2006 taxes, that are do by April 15, 2007.

 

[PryncessChrysty]

But there's no need to guess - since you've got TaxCut, just have the computer do the forms both ways and see which way you are better off.

Duh! I suppose that because I've already done our taxes, I didn't even think of this!

Thank you!

 

[PryncessChrysty]

You're asking for 2007 taxes right? Not 2006 taxes, that are do by April 15, 2007.

Yes, for 2007, filing in 2008 - if we were married this year, we wouldn't be able to claim it for 2006, anyhow (hehe)

Thanks!